You are here: Home - Household Bills - News -

Nearly all councils in England plan to raise council tax

Written by: Paloma Kubiak
A hefty 95% of councils in England plan to raise council tax and 93% said they will need to increase charging in order to “make ends meet” this year.

The 2018 State of Local Government Finance survey revealed that “councils are on the edge” as two thirds will be forced to dip into their reserves.

The survey, conducted by the Local Government Information Unity (LGiU) and The Municipal Journal also found that 80% of councils fear for their financial sustainability.

It comes as Northamptonshire County Council recently took the decision to freeze all spending but councils fear this is “just the tip of the iceberg”.

While three quarters of councils are managing to maintain frontline services over the past year, there’s growing evidence that 2018/19 budgets will see reduced activity within parks and leisure (53% of councils), adult social care (40%), and youth centres (34%). Adult social care remains the top long-term pressure for councils, followed by housing and homelessness.

Local councils in England have already been given the authority to raise council tax by up to 5.99%, adding more than £100 to the average property’s bill in April.

Jonathan Carr-West, Chief Executive of LGiU, said: “Councils are on the edge. They are for the most part holding services together (though a significant minority are not). But they can only do this by raising council tax, increasing charging and draining their reserves.

“The system is unsustainable and needs far more fundamental reform than is presently on offer. It’s simply not acceptable that we don’t know how local government will work post 2020. Councils are calling for assurances around funding for the next three years and for a fundamental redesign of the finance system. At present government is offering neither. That has to change.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week